As Nafta Grows, Trucking Deals With Domestic Problems

While trade among the United States, Canada and Mexico continued to expand under the North American Free Trade Agreement, the Clinton administration for the fifth year refused to admit Nafta truckers from Mexico, drawing a rebuke, and possible penalties, from arbitrators. In Canada, as in the U.S., skyrocketing fuel prices drove many truckers to protest lines or to the brink.

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Meanwhile, the value of North American trade grew at an impressive clip. In 2000, combined U.S.-Canada trade reached $407 billion, up from $365 billion in 1999 and $211 billion at Nafta’s beginning in 1993, according to International Trade Administration figures. Following that lead, U.S.-Mexico trade should total $245 billion 2000, when all the numbers are in, an increase from $196 billion a year earlier and $81 billion in 1993. Estimates of the amount of trade carried by truck range between 70% and 80%.

As for breaking the Nafta trucking impasse between the U.S. and Mexico, a small light appeared at the end of the tunnel with the issuance of a Nafta arbitration panel’s interim decision Nov. 29. A final decision was due Dec. 29.

The panel was convened early in the year to examine Mexico’s complaint that the United States violated its Nafta obligations by continuing to prevent Mexican truckers from hauling international cargo into and out of this country. While details will be kept under wraps until early January, Mexican authorities indicated the panel ruled against the U.S. Negotiations on compensation for Mexico could take anywhere from 30 to 90 days after both parties receive the final ruling, said the U.S. Trade Representative’s office (12-11, p. 3).

To the north, Canadian trucking companies and independent owner-operators struggled with the fuel crisis that doubled the price of diesel in less than a year. While demonstrations flared up from time to time across Canada, Ontario experienced trucker unrest for most of the year, fueling the formation of the National Truckers Association. In September, NTA threats of more demonstrations forced the provincial government and shippers to negotiate voluntary payment of fuel surcharges to independent owner-operators. While a tentative formula has been agreed upon, the parties are still negotiating (10-30, p. 90).

Strikes at maritime ports by drayage drivers in Montreal and Vancouver crippled container traffic in both ports. In Montreal, 1,600 truckers, angered by working conditions and pay, went back to their jobs after a two-week strike in November, with the province’s assurance that the issues would be negotiated. Vancouver’s drayage carriers effectively crippled the port early in the year and went back to work with guarantees of hourly wages. But in November, when the port redesigned its facilities and took away the guaranteed hourly wages, truckers struck again.

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